Gold Rises as Investors Await Fed Rate Decision
Gold prices rose more than 1% to around $4,350 an ounce on Wednesday as oil prices eased following a two-day rally, while investors awaited the US Federal Reserve’s upcoming interest-rate decision for further direction. The US central bank is widely expected to raise interest rates for the first time since 2023, with markets pricing in more than a 90% probability of at least a 25-basis-point hike, according to the CME FedWatch Tool. The move could mark the first of two rate increases projected for the year, as elevated inflation and heightened tensions in the Middle East add to pressure on the Fed to contain rising costs. Several other major central banks are also due to announce policy decisions this week. The Bank of Japan is expected to raise interest rates to their highest level in 31 years on Friday, while the Bank of England is widely expected to leave rates unchanged on Thursday, with the decision considered a close call.
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Gold prices rose more than 1% to around $4,350 an ounce on Wednesday as oil prices eased following a two-day rally, while investors awaited the US Federal Reserve’s upcoming interest-rate decision for further direction. The US central bank is widely expected to raise interest rates for the first time since 2023, with markets pricing in more than a 90% probability of at least a 25-basis-point hike, according to the CME FedWatch Tool. The move could mark the first of two rate increases projected for the year, as elevated inflation and heightened tensions in the Middle East add to pressure on the Fed to contain rising costs.
Several other major central banks are also due to announce policy decisions this week. The Bank of Japan is expected to raise interest rates to their highest level in 31 years on Friday, while the Bank of England is widely expected to leave rates unchanged on Thursday, with the decision considered a close call.